$BTC 【People's Bank of China Monetary Policy Implementation Report: Continue to Implement a Properly Moderate Easing Monetary Policy】

On May 11, the People's Bank of China released the first quarter 2026 Monetary Policy Implementation Report. It mentions continuing to implement a properly moderate easing monetary policy. Enhance policy foresight, flexibility, and targeting, based on the domestic and international economic and financial conditions and financial market operation, to properly grasp the strength, pace, and timing of policy implementation, strengthen coordination between monetary and fiscal policies, smooth the transmission mechanism of monetary policy, and promote stable economic growth and reasonable price increases. Flexibly use various monetary policy tools to maintain ample liquidity and relatively relaxed social financing conditions, guide the reasonable growth of total financial volume and balanced credit deployment, so that the growth of social financing scale and money supply aligns with economic growth and inflation expectations. Further improve the interest rate regulation framework, strengthen the guidance of the central bank’s policy interest rate, improve the market-oriented interest rate formation and transmission mechanism, give play to the market-based interest rate pricing self-regulation mechanism, strengthen the implementation and supervision of interest rate policies, reduce banks’ liability costs, guide financial institutions to improve interest rate pricing capabilities, and promote low operating costs for social financing. Continue to deepen the work on transparent corporate loan comprehensive financing costs. Effectively utilize both the aggregate and structural functions of monetary policy tools, make good use of various structural monetary policy instruments, optimize tool management, solidly implement the “Five Major Articles” of financial work, and strengthen financial support for expanding domestic demand, technological innovation, and small and micro enterprises. Adhere to a market supply and demand-based, basket-of-currencies reference, and managed floating exchange rate system, maintain exchange rate flexibility, leverage the exchange rate’s role in adjusting macroeconomics and automatic stabilizers of the balance of payments, implement comprehensive policies, enhance foreign exchange market resilience, stabilize market expectations, prevent exchange rate overshoot risks, and keep the RMB exchange rate basically stable at a reasonable and balanced level. Expand and enrich the central bank’s macroprudential and financial stability functions, improve the macroprudential and financial stability management toolbox, maintain the smooth operation of financial markets, and resolutely guard against systemic financial risks!